Transfers on the slow track at Sebi

The Securities and Exchange Board of India is said to be going slow on transferring its officials for fear that it may hold up work in what could be the last leg of the current chairman's tenure.

A lot of the transfers which were due to take place in the new financial year are yet to go through, according to a person familiar with the matter.

The bulk of the pending transfers may only take place after there is clarity on the term of UK Sinha, Chairman of Sebi; said the person. Sinha’s initial three year-term would end in February 2014, around six months from now.

UK Sinha was appointed in February 2011.

“…initially for a period of three years with effect from the date he assumes charge of the post on or after February 18, 2011 or till he attains the age of sixty five years or until-further orders, whichever is earlier,” according to a press statement issued when he took charge.

There has been no official word on an extension yet, according to another source.

If the transfers are completed in the interim, it may be feared that the pace of work could slow down, suggested one source.

“It could be felt that it may be better to time it with a change of guard if it is to take place, since that is a period of some disruption anyway,” said the person.

The transfers on hold include those of sensitive departments such as investigations, where the process of officials being shifted out to other divisions was to take place every three years, the person added.

An email sent to a Sebi spokesperson did not receive a reply at the time of writing.  

The regulator had 666 employees in various grades as per the last annual report for the financial year ending in March 2013.This includes 553 officers and 113 secretaries and other staff.

A third of the officials, or 222 of them, had been transferred last year, according to the annual report.

In the current year, the regulator has announced plans to recruit an additional 75 officers and open offices in regional centers including Shimla and Srinagar.

An officer who is new to the department generally takes a while to adjust to the change in function, according to those in the know.

“At times, a new officer can take six months or a year to do what an experienced one can accomplish in one month,” said the person.